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A note on Water - Essay Example

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Name: Instructor: Course: Date: Increasing the role of small business in the United States Market Small businesses are the backbone of the United States economy, which make them an important part of the economy; hence they should be given priority by the government…
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A note on Water
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A note on Water

Download file to see previous pages... The government should ensure that the legislations governing small businesses are extremely efficient and promote the growth of SMEs instead of stifling their growth. The government should abolish restrictive policies that limit the expansion of most SMEs and put in place regulations that favor the operations of most SMEs. The small business sector is responsible for most of the new jobs created every year by creating over 50% of the total new jobs in the American economy (Zimmerer & Scarborough, 26). SMEs also contribute a significant portion of the total retail sales and consumption in the United States. This is a significant contribution to the GDP of the country, which should be encouraged by the government through enhancing the operating environment of these businesses. Many times the government ignores the contribution of small businesses to the overall economic strength of the country, especially when implementing economic reforms targeted at improving the economy. This is what will be highlighted throughout this paper, and suggestions will be proposed on ways to reverse the situation in favor of the small business community. Problem statement or need analysis The main problem being addressed in this paper is the glaring reality facing small businesses and the fact that the government has been ignoring these businesses in many of its economic policies. Economic policies made in recent times such as the American Recovery and Reinvestment Act, which was passed in 2009 fail to address the significant issues facing small businesses. Yet these are the same businesses creating employment opportunities for majority of the American workforce. As many large corporations in the United States have been downsizing the growth of small businesses has been expanding significantly. Currently, there are over 23 million small businesses in the United States with many more being started every day (SBA, 2007). These businesses account for over half on new jobs created every year within the United States, yet they are significantly underserved by the government, which is focused on promoting the big corporate companies. A good example of the neglect by the government of small business was during the financial crash and ensuing recession of 2009, where the government put in place programs to protect the big financial institutions from failing yet did not put any structures in place to cushion the small businesses. This is a clear indication of the government’s obsession with big businesses and their contribution to the economy, while ignoring the core foundation of the economy, which is built on small businesses. Many of the so-called big corporate companies ended up downsizing their employees and it was the small businesses that absorbed these workers as employees, whereas even some of those downsized started their own small businesses. In the early 2000s when the dot com bubble burst, most of the companies that suffered were small tech businesses, which were caught up in the bubble, yet even in this occasion the government moved in to protect the investors in these stocks leaving the small business owners to suffer alone. Many of the hedge funds that had bought the dot com stocks were cushioned from the full impact of the bubble bust by the government, but this was not the case for the innovative entrepreneurs who were left with insolvent companies. However, it is important that the government switches its focus from the ...Download file to see next pagesRead More
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